Silent Nights in the Housing Market
December 2022 is anticipated to be one of the quietest on record in terms of Phoenix Metro housing sales. The biggest change from last month is that supply has changed direction and is now declining fairly rapidly. Almost 7% fewer active listings than a month ago means sellers have less competition.
Interest Rates
Mortgage interest rates have stabilized and if they were to fall meaningfully, demand might recover once the new year is well underway. However, no-one can really predict the next interest rate move with any confidence. For now we anticipate one of the quietest Decembers on record with few contracts signings, few closings and few new sellers lacing their homes on the market. -The Cromford Report Friday 12/3/22. Call me for specifics on your neighborhood.
Phoenix Metro Fastest Growing 5th Year in a Row
According to the City of Phoenix, the Valley tops the nation in population growth for the fifth year in a row. The Valley includes dozens of communities, townships and villages and an extremely efficient freeway system. I relocated here in 1982 for graduate school at ASU when the Valley was just 1.5 Million, and still find that it retains its "small town" charm. The communities all blend together and you may eat at a restaurant in Scottsdale, and have coffee across the street in Tempe.
Arizona best place to find deals in real estate
According to a Realtor.com report published December 5, Arizona tops the list of places sellers are slashing prices. In defining the markets that ranked in the study, “By and large, they offer an ideal combination of quality of life and outdoor amenities." Arizona led the list with price reductions on 40.4% of active listings. Having participated in this market for several decades, I believe 90% of these reductions are sellers who have been purposely investing in homes to flip in order to take advantage of the last two years of appreciation. Also included are sellers who really don’t care if they sell or not but would sell “for the right price,” and sellers who want to pocket what their neighbors did at the height of the market frenzy. The last two years has been very different than a normal market when sellers need to relocate due to changes in lifestyle or family needs.
Taiwan Semiconductor to Announce Second Phoenix Factory
According to azcentral on December 6, Taiwan Semiconductor, already under construction and dramatically changing the housing market in the northwest Valley, plans to expand their presence here. This will triple the company’s stake in Arizona from an original estimate of $12 billion to $40 billion. This will more than double the number of permanent jobs at the TSMC facility to 4,500. That is in addition to an estimated 10,000 construction jobs.
Other corporations investing in Arizona include a $20 billion expansion at intel’s Chandler campus, a $1.2 billion lithium-ion battery factory in Buckeye and a $100 million Corning factory in Gilbert.
One thing remains constant and is even more true than ever: Your Home Equity is a significant asset in your portfolio and you deserve expert guidance. Is Now a Good Time to Buy or Sell a Home? Call Denise 602-980-0737, celebrating a near 40 year career in Metro-Phoenix Real Estate.
